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A disappointingly partisan conclusion "And it is a strong antidote to the SNP government's posturing that under independence each person in Scotland would be £500 better off." The IFS report is a much bigger antidote to the unionist argument, run over many years, that Scotland is, of necessity, dependent on transfers of funding from wealthier parts of the UK. The IFS report summarises the position as: "Ignoring North Sea oil and gas, Scottish tax revenues per head are almost the same as the UK average." Disappointed you didn't welcome that corrective to the ridiculous notion propagated by Iain Duncan Smith that Scotland will not be able to afford its welfare bill if it leaves the Union. Huge transfers of resources take place between Scotland and the UK, in both directions, with Scotland losing much of the economic impact of its own tax revenues along the way. Post-independence, these flows would reduce, and Scotland could use its tax base to build its economy instead of to fund the higher welfare spend flowing from its relative economic decline.
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Nov 26, 2012